If the stock market can move sectors and stocks, which sectors and stocks are most likely to move in step with the stock market? Sectors and individual stocks most highly correlated to the overall market can use the S&P 500 SPDR ETF (SPY) as a directional indicator.

The following sectors are most correlated the S&P 500 SPDR ETF (SPY).

XLF Financial Select Sector SPDR Fund
XLI Industrial Select Sector SPDR Fund
XLY Consumer Discretionary Sector SPDR Fund
XLV Health Care Select Sector SPDR Fund

The following individual stocks are most correlated the S&P 500 SPDR ETF (SPY).

HON Honeywell International Inc
ABT Abbott Laboratories
MDT Medtronic Inc
HD Home Depot Inc
USB US Bancorp
QCOM QUALCOMM Inc
AMZN Amazon.com Inc
C Citigroup Inc
PG Procter & Gamble Co
SPG Simon Property Group Inc
LLY Eli Lilly and Co

Dave Mecklenburg is the Publisher of TigerSharkTrading.com.